How much overhead cost is expected to be allocated

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Question - Curly Manufacturing is estimating overhead of $600,000 for next year that is allocable to its deluxe and basic product lines. At the beginning of the year, they predicted the following activity levels of various potential cost drivers:

 

Deluxe

Basic

Total

   Units produced

15,000

45,000

60,000

   Machine hours

9,000

21,000

30,000

   Material moves

2,000

2,000

4,000

   Setups

600

400

1,000

1. How much overhead cost is expected to be allocated to the deluxe product line if machine hours is the chosen cost driver?

2. How much overhead cost is expected to be allocated to the basic product line if setups is the chosen cost driver?

Reference no: EM132103790

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